Fundamental Analysis — How It Can Help You Pick the Right Stocks!

Fundamental Analysis is the cornerstone of the investment method we use.

But what does it really mean?

Quite simply, it means analyzing the business behind the stock. We're looking to buy a piece of a business. To understand the health of the business we need to know its fundamentals — its financial performance and the management running the company. These together make up the quantitative and qualitative aspects of our analysis.

Financial Statements — The Key to Our Analysis

Analyzing the business behind the stock requires us to study the numbers — the lifeblood of the business. The key financial statements that contain everything we need are discussed here ....

Stock Valuation

You've done your analysis and targeted a company to invest in. Now it's time to figure out how much the stock is really worth?

Stock Valuation is the process you use to determine the value of a stock. We introduce you to valuation and go into the details of two stock valuation models we like to use.....

A Qualitative Look at the Management

Does the Management have the long-term interests of the company and shareholders in mind? Here's how to study the quality of the people managing the company .....

Trading vs. Investing

Fundamental stock analysis is more of an investing strategy as against a trading strategy. But what exactly is the difference? Let's set the record straight on this terminology.....

Long-Term Investing — Buy & Hold

How long do you hold an investment? Using the fundamentals to pick stocks implies a longer time horizon.....

Famous Investors Who Use "The Fundamentals" to Pick Stocks

Let's look at some well known, successful investors who have pioneered and used this investment strategy....

In summary, fundamental stock analysis studies the company behind the stock to make stock picking decisions. Financial statements are the most important tool for this analysis. Once the fundamentals have been studied, it's time to price the stock using stock valuation techniques. A qualitative evaluation of the management running the company is necessary to complete the analysis.

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